Monday, March 15, 2010

Electricity Too Expensive? Blame McGuinty

Seems like someone has found out that their rates have increased recently and that all that effort they put into trying to 'game' the system has not brought the savings they wanted.

Now, I understand why she is upset. She was told that if she did as the government wanted that she would save money, now she is realizing that despite doing exactly what the government wanted, her rates have increased by 10%. She feels that she was lied to, and in a way she was. But really, if she hadn't changed her lifestyle, she would be paying a lot more than 6.2 cents per kWh on average. So in a way she 'saved' money over what she would have been paying.

But I find the Toronto Star's position on this laughable. While complaining bitterly about the increase of a meagre 10% in this poor lady's rates, they openly advocate for policies that would send that same lady's rates soaring. Increasing wind and solar power will increase electricity rates. Period. There is no discussion or debate on this point. Even the Ontario government realized that when they signed agreements for 13.5 cents per kWh for wind and 44 cents per kWh for solar voltaic electricity sources.

I've already shown mathematically that the Ontario Liberals' policies in this regard will increase your rates significantly (I seem to recall the number $500 million / year as a minimum).

What liberals in the Toronto Star don't seem to realize is that the policies they advocate have consequences. If you want more wind power, then accept that electricity rates will increase and that working class folks are going to suffer the most.

The saddest part of this whole story? Electricity rates this last year have been ridiculously low because of the recession. But when the recession ends and your electricity rates soar, you'll know who to thank for that.


Martin said...

It seems Liberals will never be convinced of the futility of wind power untill the subsidy bills come due. By that time, much of prime agricultural land will be polluted with turbines. It will then be too late to tear down the windmills, at least that is what McGuinty hopes for.

Eric said...

I think that the Liberals believe that given enough time and money that somehow, someone will come up with a solution to the inherent problems with wind power. But given that the technology is already pretty mature I doubt it.

Ultimately though, the Liberals are the party of the rich. So their policies reflect a rich person's line of thought. The rich won't care if their electricity bills double or triple. They would gladly pay that in order to feel smug.

Skuleman said...

When I saw the rates the Samsung deal are going to force on us, I did a little number crunching. We are now on the cusp of where it makes economic sense to go off the electrical grid, and run a natural gas (or diesel, if you can get diesel without the road taxes) generator at home and generate your own power.

The other advantage to this approach is the natural gas system rarely goes down due to storms.

Eric said...

Skuleman: The only thing keeping our rates down are those nuclear power plants. Even with the cost overruns they are cheaper than wind power. If the government declines to make the investment however, things will just get worse.

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